A consortium of investors has stepped in to assist Sherritt International Corp. following the impact of U.S. sanctions on the Canadian mining company’s operations linked to Cuba. The group, which includes an undisclosed U.S. anchor investor, Kyma Capital Ltd., Trifon Natsis, and Glencore Ltd., has presented a non-binding recapitalization proposal to Sherritt’s board of directors in late June. This proposal has been under the board’s consideration since then, with the consortium now revealing the information to allow shareholders, employees, and other stakeholders to evaluate potential options.
If accepted, the consortium aims to collaborate with Sherritt to reinforce its financial structure and liquidity, while safeguarding and improving its Fort Saskatchewan refinery in Alberta, along with its North American nickel and cobalt processing capabilities. Sherritt had previously disclosed the necessity for a substantial infusion of fresh capital to support the restart of its Alberta refinery and Cuban joint venture, which had been halted due to increased pressure from the U.S. on Cuba.
The company, headquartered in Toronto, had been engaged in discussions with its senior lenders and noteholders regarding a recapitalization plan aimed at stabilizing its financial position and resuming regular activities when conditions allow. The decision to cease operations at the Fort Saskatchewan refinery had been made after the depletion of feed inventory supplied from the Moa mine in Cuba. The pause in operations at Sherritt’s Moa joint venture in Cuba had occurred earlier in the year due to fuel shortages in the country following the U.S.’s restriction on oil access from Venezuela in January.